Ballot Initiatives for Employers
November 16, 2020
Paycard
March 31, 2021

California has a new annual pay data reporting requirement and the Department of Fair Employment and Housing (DFEH) has created a new web page focused on the data reporting regulation. The site includes a link to SB 973, as well as a Q&A section that is arranged by topic.

All private employers in the state of California with 100 or more employees who are required to file an annual Employer Information Report (EEO-1) must submit the required pay data reporting by March 31, 2021, to the DFEH. The pay data reporting must also be submitted to the DFEH every year thereafter

This regulation applies to employers with employees working both within the state of California and in other states. For example, if an employer had 50 employees in the state of California and 60 employees in other states, they would be required to submit the pay data report to the DFEH. An employer with no employees in the state of California would not be required to submit the report. The requirement applies to full-time and part-time employees, as well as employees on paid or unpaid leave.

The Q&A section of the new website highlights key background information related to the introduction of the law and the required content and filing requirements. These sections cover the specific details that must be included on the new form. Additional topics are currently listed as placeholders, including:

• Pay
• Hours Worked
• Acquisitions and Mergers
• Spinoffs
• Multi-Establishment
• Employers

The DFEH will continue to provide more information and update the pay data reporting site with additional questions and answers as they come in. Additional regulations regarding the implementation of the new law and form are yet to be released, as will the online reporting system and related technical specifications.